Should
India boycott Chinese products, how that can be done ? – how much will it
impact our economy – and how much would it impact China ?
Are you an
Economist ? or do you understand Economics !!
- have you read ‘the Wealth of Nations’ – do you know Adam Smith, John
Meynard Keynes, Milton Friedman – my simple emotional answer is ‘I am angry ! ~ I want to boycott Chinese goods’. My knowledge of Economics is ‘Indian Economy is best economy,
Indian economy is …………… ’ !! ~ my simple
logic is let me not contribute to the richness of someone who is always enemy
of the Nation. I am ready to buy a
product, even if its comparatively lesser in technology but costs more than
what the Chinese one is.
Most Nation loving Indians
are angry after bloody clash on June 15
between Indian and Chinese troops at Galwan. Across the country, there are
calls to boycott Chinese products and halt bilateral trade, with people burning
Chinese appliances and goods and a Union minister even wanting a ban on
restaurants selling Chinese food. WhatsApp forwards are further stoking this
sentiment. This is no Central Govt or ruling BJP against Chinese but My Country
– I feel for my army men who is guarding us foregoing all their comfort. Jai Jawan.
I was
temperate reading the announcement of BCCI and vowed that I would not watch any
of the IPL matches if that were to happen ! ~
Chinese smartphone manufacturers Vivo will continue to be title sponsors
of the Indian Premier League (IPL), said a top BCCI official, addressing
speculations that the Indian cricket board may have to reconsider their deal
following the violence in Ladakh’s Galwan valley that claimed the lives of 20
Indian soldiers. “The contract was signed by our predecessors. It’s a five-year
deal and will continue,” said treasurer Arun Dhumal. The
money is coming into India,” he argued. To me it sounded ridiculous – every advertiser
is only trying to invest, not doing charity, more the advt, more the sales
would be ! – to see them on IPL and if players were to endorse them also, the
product sales would naturally increase. That
is my limited knowledge of Economics.
In Dec 2019, Chinese
handset maker Vivo retained the title
sponsorship of the Indian Premier League (IPL). The company was to pay the Board of Control for Cricket in India
(BCCI) Rs 2,199 crore over the next five years.
The next highest bid was Rs 1,432 crore by Oppo, which holds the Team
India sponsorship rights. Both Vivo and Oppo are parts of the same parent
group. The base price for bidding was Rs 600 crore for five years, or Rs 120
crore per year. The deal was at a big
mark-up to the previous one Vivo had with the BCCI. The Chinese handset maker
came in as title sponsor in 2016 after beverage giant Pepsi pulled out of its
five-year deal with the BCCI over a match fixing and betting scam. While Pepsi
was to pay the BCCI Rs 396 crore over five years, Vivo picked up the two-year
title sponsorship at Rs 200 crore. When BCCI
went to market, Five companies, all handset makers, had applied for the title
sponsorship. Apart from Oppo and Vivo, the others were Xiaomi, Motorola and
Intex. Soon after, IPL also roped Paytm, the mobile wallet company, as the
official Umpires Partner (an on-ground sponsor) between 2018-22 for an
undisclosed amount. One of the main investors in Paytm is Alibaba, a Chinese
e-commerce company.
Today comes the news that
the IPL has convened a meeting of its Governing Council next week to
"review various sponsorship deals" for the tournament following
tensions this week on the India-China border. The move reflects the fact that
the IPL's main sponsors, including title sponsor Vivo, have Chinese ownership
or links. While there has been tension at the border in the Indian region of
Leh for some days, the flashpoint was the gory incident on the night of June 15; though
details are scarce, the Indian government has said that its army lost 20
soldiers, including one senior officer, in the incident. Posting a late tweet
on Friday, the BCCI just said it would review the IPL sponsorship deals but did
not name exactly which ones.
A mega online
poll involving all Network18 digital and social news platforms, conducted to
gauge public sentiment on China in the aftermath of the Galwan Valley clashes
earlier this week, has shown that at least 70% of Indians are willing to
boycott Chinese goods even if it means paying extra. Meanwhile, 91% of the
respondents said they will stop using Chinese apps and social media platforms
and also encourage others to do the same.
While that
is the National sentiment, Senior Congress leader P Chidambaram today said that Prime Minister Narendra Modi's
remark on the Galwan valley conflict with China has left practically everyone
baffled and bewildered. Speaking about
the call to boycott Chinese products, Chidambaram said that simply boycotting
their products will not hurt the economy of the neighbouring country as Chinese
trade with India is only a fraction of its world trade. "We must become
self-reliant as much as possible but we can't decouple with the rest of the
world. India must continue to be part of the global supply chain and not
boycott Chinese goods. What part of Chinese trade with India is China's world
trade? It's a fraction," he said.
He may be well-educated, but is that statement right at this stage ! –
should not Congress be supporting the Nation rather than opposing the
Government ?
Elsewhere, in a
hard hitting speech, US Secretary of State Mike Pompeo attacked China for its
“rogue” attitude in its neighbourhood, specifically mentioning its recent
border attacks against India. “The PLA (People’s Liberation Army) has escalated
border tensions with India, the world’s most populous democracy. It’s militarising
the South China Sea and illegally claiming more territory there, threatening
vital sea lanes,” Pompeo said during an online conference on democracy in
Copenhagen, Denmark. During questions he said democracies and freedom-loving
peoples of the world needed to come together to tackle China. Pompeo was
careful to focus his criticism on the Chinese Communist Party but unusually
cited Chinese leader, Xi Jinping, by name. “General Secretary Xi Jinping has
green-lighted a brutal campaign of repression against Chinese Muslims, a human
rights violation on a scale we haven’t seen since World War II. Now, the PLA
has escalated border tensions with India,” he said. Pompeo said China was
responsible for “pushing disinformation and malicious cyber campaigns so as to
drive a wedge between the US and Europe.” The Chinese Communist Party wants to
undo the progress the free world has made and adopt a new set of rules and
norms that accommodate Beijing.
Just in
case, if you were intrigued by the names : Adam Smith, John Meynard Keynes,
Milton Friedman
1)
Adam Smith FRSA
(1723-1790) was a Scottish economist,
philosopher, and author as well as a moral philosopher, a pioneer of political
economy, and a key figure during the Scottish Enlightenment, also known as
''The Father of Economics''. Smith wrote two classic works, The Theory of
Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth
of Nations (1776).
2)
John
Maynard Keynes (1883 – 1946) was a British economist, whose ideas
fundamentally changed the theory and practice of macroeconomics and the
economic policies of governments.
3)
Milton Friedman (1912 – 2006) was an American economist who received the
1976 Nobel Memorial Prize in Economic Sciences for his research on consumption
analysis, monetary history and theory and the complexity of stabilization
policy.
One need
not be an Economist to say that I love my Country and would not support
anything that is against my Nation. Mera
Bharat Mahan Hi.
With regards – S.
Sampathkumar
20.6.2020
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